Genesis Energy has signed a definitive agreement to purchase Valero Energy’s indirect 50% equity interest in Cameron Highway Oil Pipeline, a partnership, for $330m in cash.

Enterprise Products Partners also owns an indirect 50% interest in and operates Cameron Highway.

Cameron Highway is a 380-mile 24- and 30-inch diameter pipeline, with capacity to deliver up to 500,000 barrels per day of crude oil from developments in the Gulf of Mexico to major refining markets along the Texas Gulf Coast located in Port Arthur and Texas City.

Genesis Energy CEO Grant Sims said that this is a very strategic investment for Genesis, and it further complements the integrated midstream services the company provides to Gulf Coast producers and refineries and it diversifies its asset portfolio.

Enterprise will continue its role as operator of Cameron Highway, overseeing physical operations and maintenance activities.

The company said that the acquisition is expected to close before year end, subject to usual and customary conditions including receipt of all regulatory approvals.